Michigan plumbing license requirements and insurance

To work for yourself as a plumber in Michigan, you need the Plumbing Contractor license. Michigan has 4 plumbing license types, and which one you need depends on the work you take on. The state sets no minimum liability insurance, and workers' comp is required once you have employees. The state does not ask for a bond.

Checked by the Trades by State editor on 2026-09-16 Based on 22 official pages, listed at the bottom Something wrong? Tell us

License you need: Plumbing Contractor Renew Every 3 years, expires April 30
Insurance you must carry: No state minimum customers usually ask for $1,000,000
Workers' comp: Required as soon as you hire anyone
Credit score: None found or take a 14-hour course
To protect your pay, send notice by: Send a Notice of Furnishing (the form that tells the owner you are on the job) within 20 days of your first day supplying labor or material (first day on the job on March 1 means notice by March 21). It goes to the designee and the general contractor named in the Notice of Commencement, or to the owner if no designee is named.

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1 What stands out in Michigan for a plumber What is this?

The things people get wrong or do not expect about Michigan, in a few sentences.

There is no short road to your own plumbing business in Michigan. You need 6,000 hours over at least 3 years as a registered apprentice to sit the journey exam, then 4,000 more hours over at least 2 years as a journey plumber to sit the master exam. Only then can you apply for the contractor license.
The plumbing contractor license goes to a person, not a company. That person must be a sole proprietor, a partner, a corporate officer, or an LLC member, and must either hold a master plumber license or employ a master plumber. A master plumber can stand behind only one contractor at a time.
The state asks for no liability insurance and no bond to issue a plumbing license. Workers' comp is a separate rule. You must carry it once one person works 35 hours a week for 13 weeks in a year, or once you have 3 people working at the same time, part-timers included.
For sales tax you are the customer, not the seller. You pay 6 percent when you buy pipe and fixtures and you charge the homeowner no tax on the job. The rule is the same for a house or a shop, and for a repair or a new build.
Michigan does not make you print your license number on ads, invoices, or trucks. The one display rule is a sign at your business entrance with the master plumber's name and license number in letters at least 3 inches high. A rule now in draft would add the license number to the written job document.
If a builder hired you rather than the owner, send a Notice of Furnishing within 20 days of your first day on the job. To file a lien you have 90 days from your last day.

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·7 official pages

2 Who issues plumber licenses in Michigan? What is this?

Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes, Plumbing Division (LARA BCC) issues plumbing licenses in Michigan.

Name	Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes, Plumbing Division (LARA BCC)
Website	https://www.michigan.gov/lara/bureau-list/bcc/sections/licensing-section/exam-lic/plumbing-examination-licensing-registration-application-information
Look up a license	https://aca-prod.accela.com/LARA/GeneralProperty/PropertyLookUp.aspx?isLicensee=Y&TabName=APO
The law	Skilled Trades Regulation Act, 2016 PA 407, Article 11 (MCL 339.6101 to 339.6133)
The rulebook	Skilled Trades Regulation Rules, R 339.5101 and following

Taken from the linked page, not separately checked

3 Michigan plumber license requirements and fees What is this?

Michigan has 4 license types that matter to a plumber. The Plumbing Contractor needs you must hold a master plumber license yourself, or employ a master plumber who represents your business. That master plumber can represent only one contractor at a time. You also give the state your home and business addresses for the past 5 years.

Plumbing Contractor

The license you need to run a plumbing business, pull permits, and hire plumbers. Only a sole proprietor, a partner, a corporate officer, or an LLC member can apply.

What you can work on

Plumbing installation and repair anywhere in Michigan. A city cannot add its own plumbing license on top.

Experience required

You must hold a master plumber license yourself, or employ a master plumber who represents your business.
That master plumber can represent only one contractor at a time.
You also give the state your home and business addresses for the past 5 years.

Training required

None stated

Exam

Yes, a written exam run by PSI

Fees

Exam	$100
First license	$300
Renewal	$300
Late renewal	$100

Renewal

Every 3 years, expires April 30

Training hours each year

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Master Plumber

The step before the contractor license. A master plumber supervises journey plumbers and apprentices and is the person of record behind a plumbing contractor.

What you can work on

All plumbing work, under a licensed plumbing contractor

Experience required

4,000 hours of work as a licensed journey plumber over at least 2 years, right before you apply. Any lapse in your journey license in those 2 years breaks the count.

Training required

None stated. After a state plumbing code change you must finish a board-approved code update course within 12 months to keep renewing.

Exam

Yes, a written exam run by PSI

Fees

Exam	$100
First license	$300
Renewal	$300
Late renewal	$100

Renewal

Every 3 years, expires April 30

Training hours each year

About the fees

A master plumber who is also the contractor pays only the contractor fee, not both.

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Journey Plumber

Lets you work as a plumber for a licensed contractor. You cannot pull permits or run a business with this alone.

What you can work on

Plumbing work under the supervision of a master plumber

Experience required

6,000 hours over at least 3 years as a registered apprentice, under a licensed master or journey plumber.
Hours worked while your apprentice registration was lapsed do not count.
You must be 18.

Training required

None stated. After a code change you must finish a board-approved code update course within 12 months to keep renewing.

Exam

Yes, two parts on one application, a written exam run by PSI and a hands-on practical exam run by the state.
You must pass both.
The application is good for one year and a pass does not carry over.

Fees

Exam	$100
First license	40
Renewal	40
Late renewal	$100

Renewal

Annual, expires April 30

Training hours each year

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Plumbing Apprentice (registration)

Anyone learning the trade on the job. You must register within 30 days of starting work, and your hours only count while you are registered.

What you can work on

Plumbing work under direct on-site supervision of a journey or master plumber

Experience required

None. Your employer signs the form with the contractor and master license numbers.

Training required

None stated

Exam

Fees

First registration	15
Renewal	15
Late renewal	20

Renewal

Annual, expires April 30

Training hours each year

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4 How much insurance does a plumber need in Michigan? What is this?

Michigan sets no minimum liability insurance for this license. Customers and general contractors usually ask for $1,000,000 anyway. Workers' comp is required once you have employees.

Minimum liability insurance	None required by the state
Type of policy	None required by the state to hold the license. The sections of the plumbing article read for this record say nothing about insurance. Customers and builders will still ask for it.
Who this applies to	Nobody, as a state licensing rule
Who must be named on the certificate	None
Workers' comp required?	Yes, once you regularly have 1 employee working 35 hours or more a week for 13 weeks or longer in the past 52 weeks, or 3 or more employees at one time, part-timers included
Who can opt out	A sole proprietor is not an employee and is not covered. Partners, corporate officers, and LLC member-managers count as employees but can exclude themselves with form WC-337 (Notice of Exclusion). The form only works if everyone in the business can be excluded and you use no subcontractors. It is not valid until the agency stamps it. If you hire a subcontractor with no coverage, you are on the hook for their workers' injuries.

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5 Does Michigan check your credit for a plumber license? What is this?

Michigan does not check your credit for this license.

Credit score you need	None found
If your score is lower	None. The state does not run a credit or money check for a plumbing license as far as the sections read for this record show.

Checked by software against the official page·legislature.mi.gov

6 Does a plumber need a bond in Michigan? What is this?

Michigan does not require a state bond for this license. Some cities ask for one before they issue permits.

Does the state require a bond?	No
Amount	Not listed yet

The state does not ask for one to issue the license. Some cities ask for a bond (a promise, backed by an insurance company, that the city or customer can be paid if you do not finish the job) before they let you pull permits. Check with the city where you work.

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7 Where must a Michigan plumber show the license number? What is this?

In Michigan: the state does not make you put the number on ads, quotes, invoices, or trucks. A licensed plumbing contractor must put a sign at the entrance of the place of business. It shows the business name and the name and license number of the master plumber, in letters at least 3 inches high. Nobody may advertise for plumbing work without a license. A draft rule change (Rule 115, open for comment in July 2026) would add a new requirement. The license number would have to appear on the written job document that lists payment terms and the work to be done.

The rule	The state does not make you put the number on ads, quotes, invoices, or trucks. A licensed plumbing contractor must put a sign at the entrance of the place of business. It shows the business name and the name and license number of the master plumber, in letters at least 3 inches high. Nobody may advertise for plumbing work without a license. A draft rule change (Rule 115, open for comment in July 2026) would add a new requirement. The license number would have to appear on the written job document that lists payment terms and the work to be done.
If you forget	Advertising without a license counts as false advertising under the act. Working without a license is a misdemeanor. A first offense is up to $500 or 90 days in jail. A second is up to $1,000 or 1 year. A third is a felony, up to $25,000 or 5 years. The penalty for a missing sign was not found.

The rule

The state does not make you put the number on ads, quotes, invoices, or trucks.
A licensed plumbing contractor must put a sign at the entrance of the place of business.
It shows the business name and the name and license number of the master plumber, in letters at least 3 inches high.
Nobody may advertise for plumbing work without a license.
A draft rule change (Rule 115, open for comment in July 2026) would add a new requirement.
The license number would have to appear on the written job document that lists payment terms and the work to be done.

If you forget

Advertising without a license counts as false advertising under the act.
Working without a license is a misdemeanor.
A first offense is up to $500 or 90 days in jail.
A second is up to $1,000 or 1 year.
A third is a felony, up to $25,000 or 5 years.
The penalty for a missing sign was not found.

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·4 official pages

8 Does a plumber charge sales tax on labor in Michigan? What is this?

In Michigan, no sales tax on your labor. The rest of the rules are below.

See how this compares in every state: Sales tax on labor for plumbers and HVAC contractors by state

Labor on homes (repairs and remodels)	No sales tax on your labor
Repairs and remodels on businesses	No sales tax on your labor. Michigan treats a house and a business the same.
Labor on new buildings	No sales tax on your labor. Michigan treats new work and repairs the same.
Materials, when you quote one total price	You pay 6 percent sales or use tax when you buy pipe, fittings, fixtures, and supplies, and you charge the customer no tax. You are the final consumer of what you install.
Materials, when you list them separately	Same as a lump sum job. If you regularly hold yourself out as a retailer and collect sales tax on materials you sell, the state then treats you as a retailer for those sales. Do not itemize and charge tax unless you mean to be a retailer.
Sales tax license	Not needed unless you also sell goods over the counter. You register for use tax instead if you buy materials without paying tax.
Tax rate	6 percent state rate

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9 Getting paid: lien and notice deadlines for a Michigan plumber What is this?

If you are not paid in Michigan, a lien on the property is your backstop, but only if your notice goes out on time: send a Notice of Furnishing (the form that tells the owner you are on the job) within 20 days of your first day supplying labor or material (first day on the job on March 1 means notice by March 21). It goes to the designee and the general contractor named in the Notice of Commencement, or to the owner if no designee is named.

Who has to send a notice	A subcontractor or supplier hired by the contractor, not by the property owner. A contractor working straight for the owner does not need to send it.
Send your notice by	Send a Notice of Furnishing (the form that tells the owner you are on the job) within 20 days of your first day supplying labor or material (first day on the job on March 1 means notice by March 21). It goes to the designee and the general contractor named in the Notice of Commencement, or to the owner if no designee is named.
File your lien by	Record the claim of lien with the register of deeds in the county where the property is within 90 days of your last day supplying labor or material (last day on March 1 means record by May 30). Serve a copy on the designee within 15 days of recording.

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10 How much does it cost to become a plumber in Michigan? What is this?

The government fees on this page add up to about $685 in Michigan. Add insurance, tools, and a vehicle to get the real number.

Government fees, added up	$685

Does not include insurance premiums, tools, a vehicle, city permits, or PSI exam retakes. Renewing the journey license during the 2 master years adds $80.

Our estimate

11Where these numbers come from

The labels under each table are explained on how to read a page.